Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Nuplex cuts earnings guidance a second time

Nuplex cuts earnings guidance a second time

By Jonathan Underhill

June 10 (BusinessDesk) - Nuplex Industries cut its full-year earnings guidance for a second time, saying competition across its Australia and New Zealand business has squeezed margins for both resins and specialty chemicals.

Earnings before interest, tax, depreciation and amortisation (ebitda) for the 12 months ending June 30 are now expected to be between $121 million and $125 million, compared with guidance issued four months ago for ebitda to fall within the lower end of a range of $130 million to $145 million.

The projection includes $2.4 million of net costs to reorganise its Australasian business and an estimated $2 million in foreign exchange losses.

Net profit would likely match 2013's result of $42.9 million, subject to accounting adjustments, the Auckland-based company said in a statement.

"As noted back in February, the outlook for Australia-New Zealand (ANZ) was challenging," said chief executive Emery Severin. "Since then, whilst volumes have been in line with internal forecasts, competitive pressures have impacted margins across the larger businesses."

The shares fell 4.8 percent to $3.20 and are down 1.2 percent this year. The stock is rated 'hold', based on the consensus of six analysts surveyed by Reuters.

The company's ANZ resins segment ebitda was expected to drop between 35 percent and 40 percent this year, while the ANZ specialties segment would record a decline of 45 percent to 50 percent, "primarily reflecting margin pressure in both segments," the company said.

The results would include a negative foreign exchange impact of about $2 million, reflecting a stronger kiwi dollar over the past five months, and accounting adjustments for re-organising the ANZ business of $2.1 million, it said.

Trading in Europe had exceeded the company's expectations and as a result, ebitda for Europe, Middle East and Africa is expected to rise between 15 percent and 20 percent in local currency terms. Asia had met expectations and will lift earnings between 10 percent and 15 percent, it said.

In the Americas, ebitda would be flat on a year earlier in local currency terms, reflecting a recent loss of tolling volumes, Nuplex said.

The company expects to hold its 2014 dividend payment in line with payments for 2013, it said.

Nuplex will release its full-year results on August 14.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news